Selling or buying a business

An employer is required to notify BWC when purchasing or continuing the operations of a business, in whole or in part.

Both predecessor (seller) and successor (buyer) must notify BWC of a transfer in operations. BWC transfers all of an employer's claims experience when a new owner wholly assumes the former employer's business. If the new owner assumes only a portion of the business, we only transfer that part of the former employer's experience to the succeeding employer.

To learn about about the experience or outstanding financial obligations of the predecessor employer before you acquire a business, complete the Request for Business Transfer Information (AC-4). Both seller and potential buyer MUST sign this form.

Predecessor employer

After notifying BWC of the transfer and a request to cancel coverage, the predecessor employer has 45 days from the date of cancellation to report the final payroll, also known as true-up. As a predecessor employer, your policy must be in a cancelled status to access the Payroll true-up report.

Important: If you have additional locations covered under the policy for which a portion of the business was transferred, do not complete a cancellation request. Complete the U-118 instead.